In the real estate market of late 2025, timing is everything. You find the perfect home in Hampstead, but your current house in Leland hasn't even hit the market yet.

In the past, you would write an offer "contingent on the sale of your home." But in today's stabilizing yet competitive market, sellers often reject contingencies. They want a sure thing.

This leaves many buyers stuck in the "Catch-22" of real estate: You can't buy without selling, but you can't sell without a place to go.

Enter the Bridge Loan. Once a niche product, it has returned as a vital tool for move-up buyers in New Hanover and Brunswick counties. Here is exactly how to use it to unlock your equity and buy your next home with cash-like confidence.

1. What is a Bridge Loan?

A bridge loan is exactly what it sounds like: short-term financing that "bridges" the gap between buying your new home and selling your old one.

How it works: A lender gives you a short-term loan (usually 6–12 months) based on the equity in your current home.

The Cash: You use these funds for the down payment and closing costs on the new house.

The Payoff: When your old home sells, you use the proceeds to pay off the bridge loan in one lump sum.

The Monthly Payment: Many bridge loans are "interest-only", keeping your monthly obligation lower while you temporarily own two homes.

2. The "Local" Option: Banks & Credit Unions

In Southeastern NC, your best bet for a bridge loan is often a local relationship, not a national algorithm.

First National Bank (FNB) & CCNB (Coastal Carolina National Bank): Both institutions have a strong presence in our region and are known for offering dedicated residential bridge loan products. Unlike some national lenders who view these as "investor only" loans, these banks understand the local move-up buyer.

Pros: Lower fees, local underwriting, and a relationship-based approach.

Cons: They typically require a strong credit score (700+) and significant equity (20–30%) in your current home.

The "DIY Bridge": SECU & Coastal Credit Union: While State Employees’ Credit Union (SECU) does not offer a product explicitly named a "bridge loan," savvy members use their Home Equity Line of Credit (HELOC) as a functional equivalent.

Strategy: You open a HELOC on your current home before you list it. You draw the funds to pay the down payment on the new home. When the old home sells, you pay off the HELOC.

2025 Alert: Coastal Credit Union has been aggressive with 100% CLTV (Combined Loan to Value) equity products, meaning you might be able to access all your equity, not just 80% of it.

3. The "Tech" Option: Buy-Before-You-Sell Programs

If you don't qualify for a traditional bridge loan (perhaps due to Debt-to-Income ratios), "PropTech" companies offer an alternative.

Knock (Knock Bridge Loan™): Active in North Carolina, Knock offers a program where they effectively lend you the down payment and can even advance funds for home prep (painting, repairs) to get your old house ready for market.

The Cost: Expect to pay a "program fee" (often ~2% of the home's value) plus standard closing costs. It is more expensive than a bank loan, but it offers higher convenience and often looser income requirements.

Note: While companies like Ribbon and EasyKnock were popular in previous years, their presence has shifted or ceased. Stick to active, verified players like Knock or verified local lenders.

4. The Cost Reality (Late 2025 Estimates)

Convenience comes with a price tag. Bridge loans are riskier for lenders, so they carry higher rates.

Interest Rates: Expect a rate roughly 2% above the Prime Rate. In late 2025, this likely puts bridge loan rates in the 8.5% – 10.5% range.

Perspective: Remember, you typically only pay this for 3–4 months. Paying 9% interest for 90 days is often cheaper than moving twice or losing your dream home.

Origination Fees: Lenders may charge 1-2 points (1-2% of the loan amount) upfront. Always ask for a "no points" option, even if the rate is slightly higher, since you plan to pay it off quickly.

5. Is a Bridge Loan Right for You?

YES, IF:

• You have substantial equity (30%+) in your current home.
• You are buying in a competitive neighborhood (like Landfall or Porters Neck) where "contingent" offers are being rejected.
• You have a solid exit strategy (your current home is market-ready).

NO, IF:

• You have less than 20% equity.
• Your current home needs massive renovations before it can sell.
• You would panic if your old home sat on the market for 90 days.

The Bottom Line

A bridge loan turns you into a "Cash-Like" buyer. It removes the contingency domino that kills so many deals, allowing you to move on your timeline, not the buyer's.

At Aspyre Realty Group, we don't just find you the house; we help you structure the money. We have direct contacts at First National, CCNB, and Coastal Credit Union who can pre-qualify you for a bridge product before we go shopping.